Securing sustainable funding remains one of the biggest challenges facing nonprofits today. With increasing competition for donor dollars and evolving giving patterns, relying on a single funding source can put your mission at risk.
Smart nonprofits diversify their funding streams to build financial resilience and expand their impact.
This comprehensive guide explores 11 proven funding sources, from traditional grants to innovative digital solutions. You'll discover practical strategies to develop a funding mix that supports your organization's long-term success.
10 sources to get funding for your nonprofit
2. Grants
5. Crowdfunding
8. Impact investing partnerships
10. Donor-advised funds (DAFs)
Why nonprofits need different funding sources
Depending on a single funding source leaves your nonprofit vulnerable to unexpected changes and economic shifts. Building a diverse funding portfolio helps protect your mission by spreading risk across multiple channels. When one source experiences a downturn, others can help maintain stability.
Different funding types also serve distinct purposes - restricted grants fund specific projects, while unrestricted donations provide crucial operational flexibility. A thoughtful mix of funding sources strengthens your financial foundation and demonstrates sound fiscal management to stakeholders.
Traditional fundraising sources for nonprofits
1. Individual donations
Recurring donations
Recurring donations give nonprofits a steady stream of funds, making it easier to plan and budget. From 2018 to 2022, nonprofit organizations saw a 127% rise in recurring donors.
To attract these donations, start by sharing the benefits of giving monthly or quarterly. Use your website and social media to share real-time donor and impact stories, establishing a transparent relationship with your donors and strengthening their trust.
Make signing up easy and offer multiple giving options so individual donors can choose what suits them best. Keep recurring donors engaged with regular updates on how their contributions are used to build long-term commitment.
Monthly giving programs are a powerful way for nonprofits to secure steady funding. In 2023, monthly donations made up 31% of all online revenue, up from 27% in 2022. This approach lets supporters give regularly, providing nonprofits with dependable income to plan and grow.
Read our guide to starting a monthly giving program for your nonprofit [Coming Soon]
Major gifts
Major gifts provide essential funding for big projects or daily operations. Identify potential donors by reviewing current supporters with a history of strong interest or larger contributions.
Send a personalized message, share impactful stories, and present specific projects they can support to make their giving meaningful. Building strong relationships motivates major donors to continue supporting your organization’s mission.
Mobile messaging
In 2023, nonprofits earned $92 for every 1,000 messages sent.
Through mobile messaging, nonprofits can connect directly with supporters, sharing timely updates and fundraising requests building stronger relationships and trust. With a 14% increase in revenue from mobile messages last year, this strategy can clearly help diversify funding sources.
2. Grants
Federal government grants
Federal grants offer substantial funding opportunities for nonprofits addressing critical societal needs. These grants typically support specific program areas like education, healthcare, social services, and environmental protection.
While the application process demands careful attention to requirements and deadlines, successful proposals can secure significant multi-year funding.
Start by identifying relevant federal agencies whose missions align with your work. Create detailed project plans that demonstrate clear outcomes and strong organizational capacity to manage federal funds.
Government grants
To secure government grants, identify local and state agencies supporting nonprofits with missions aligned to community needs, like job training or environmental projects.
Carefully review the application guidelines and ensure your proposal clearly shows how your project meets its objectives and impacts the community.
Attend community events, introduce your nonprofit, and share your work to build relationships with local officials. This can foster partnerships and improve your chances of receiving funding.
Corporate grants
Corporate sponsorships foster mutually beneficial partnerships between nonprofits and businesses committed to social responsibility. Beyond direct financial support, these relationships can provide in-kind donations, volunteer engagement, and valuable visibility.
Focus on approaching companies whose values and target audiences align with your mission. Present specific sponsorship opportunities with clear benefits, impact metrics, and recognition plans. Successful partnerships often start small and grow as both parties demonstrate value and trust.
Foundation grants
Foundation grants fund nonprofits in areas like education, health, and the environment. Start by identifying foundations that align with your mission and understand their funding priorities. Write a proposal that outlines your project’s goals, impact, budget, and timeline to show thorough planning.
Gather essential documents, such as proof of nonprofit status and support letters, and follow all application guidelines precisely. Reach out to foundation staff with any questions to build a connection, and follow up on the decision timeline to increase your chances of securing funding.
3. Corporate sponsorships
Corporations are often keen on nonprofit funding because they recognize the significance of social engagement.
Corporate philanthropy and sponsorships are effective ways to support charities, allowing companies to provide cash contributions, in-kind donations, or host values-aligned events.
For example, Mountain Dew partnered with Team Rubicon, a nonprofit that mobilizes volunteers to respond to natural disasters and humanitarian crises, demonstrating how corporate sponsorship can create a meaningful impact.
4. Fundraising events
- Formal galas and dinners: Create experiences that unite major donors, featuring keynote speakers and premium entertainment
- Auctions: Showcase unique items and experiences from local partners through both live and online bidding platforms
- Walk-a-thons: Unite your community through sponsored runs and walks that combine fitness with fundraising goals
- Prize raffles: Drive broad participation with exciting prize draws, offering both digital and traditional ticket options
- Virtual events: Reach global audiences through interactive webinars and virtual conferences while minimizing overhead costs
- Entertainment events: Combine cause awareness with compelling performances through benefit concerts and cultural shows
- Seasonal celebrations: Leverage holiday spirit and community traditions to create timely, themed fundraising opportunities
5. Crowdfunding
Launch a crowdfunding campaign with a clear, exciting goal that people can rally around—like a new project or emergency support. Keep your message short and powerful, showing why this matters now.
Make it easy to share on social media so you can reach as many people as possible. Encourage small, one-time gifts that quickly add up and keep everyone updated to keep the energy high.
6. Membership programs
Build a membership program to attract steady support each year. In exchange for their commitment, offer members exclusive perks, like special updates or invites.
Think about what rewards will truly engage supporters—whether it’s behind-the-scenes news, VIP access, or unique items. Make joining easy and connect regularly with members to show how their support is indispensable for your cause.
7. Peer-to-peer campaigns
Peer-to-peer fundraising leverages the power of your supporters' networks to expand your donor base organically. By empowering volunteers to fundraise on your behalf, you multiply your reach while building deeper engagement with existing supporters.
The key is providing these fundraisers with compelling stories, eye-catching assets, and simple tools to share your mission.
Set achievable goals for each fundraiser and celebrate their progress to maintain momentum. The personal connections in P2P campaigns often lead to higher average donations and stronger long-term donor relationships.
Creative funding sources for nonprofits
8. Impact investing partnerships
Impact investing partnerships connect nonprofits with investors who seek to create meaningful social change while maintaining financial sustainability. These partnerships provide organizations with capital to expand their mission's impact through measurable outcomes.
City Harvest, a food bank, raised $50 million through impact investors who sought both financial returns and social good. To get started, build a strong plan showing how the funds will help you expand and reach more people. Connect with impact investors through networks like Toniic or Mission Investors Exchange.
9. Tribute giving programs
Tribute giving programs let donors honor loved ones by making donations in their name during special occasions. This not only raises funds but also strengthens the emotional bond between donors and your mission.
To start a tribute program, create a page where donors can share stories and photos. Send special cards to the families being honored and encourage donations on key dates, turning personal milestones into meaningful moments of giving.
10. Donor-advised funds (DAFs)
Donor-advised funds (DAFs) let donors set aside assets - including cash, stocks, or property - for charitable giving while receiving immediate tax benefits. These funds, managed by community foundations or financial institutions, connect nonprofits with donors who support aligned causes.
To attract DAF gifts, find out which foundations manage them. Build strong connections with their staff and show how your nonprofit matches donor interests. Share impact reports and success stories to build trust and encourage giving.
6 best practices for fundraising success
1. Effective storytelling
Storytelling connects potential donors to your nonprofit’s mission and impact. Craft clear, compelling narratives that showcase the real-world effects of your work.
Focus on specific projects, powerful beneficiary stories, and measurable results to highlight how donations make a difference. Share these stories across your website, social media, and fundraising materials to engage and inspire donors and encourage them to support your cause.
Learn how to leverage storytelling for your fundraising campaigns [Coming Soon]
2. Transparency and accountability
Being transparent and accountable builds trust with donors, which is key to securing ongoing funding. Clearly explain how funds are spent and the results they achieve. Share regular updates, financial reports, and project assessments.
Stick to strong financial practices and ethical fundraising standards. Donors who see how responsibly their contributions are managed will likely continue supporting your cause.
Read our guide to see how to improve nonprofit transparency [Coming Soon]
3. Donor retention strategies
It’s easier and cheaper to keep existing donors than to find new ones. Keep donors engaged by sending personal updates and thanking them for their support. Celebrate their contributions with thank-you notes, recognition events, or loyalty programs.
Use data to understand donor preferences and tailor your communication to keep them involved, helping ensure their continued support.
4. Leveraging social media
Social media is a powerful way to reach more people and engage potential donors. Keep active profiles on platforms like Facebook, Instagram, and LinkedIn, and share updates, success stories, and fundraising campaigns.
Use targeted ads to find new donors who share your mission and encourage followers to share your posts. Interactive features like live streams and virtual events can boost engagement and fundraising efforts.
5. Data-driven fundraising
Data analytics helps you track fundraising success, understand who your donors are, and spot trends. Use this information to improve campaigns and personalize communication.
A solid Customer Relationship Management (CRM) system can make managing data easier and give you insights that improve your fundraising strategy.
Learn how data analytics can help your nonprofit grow. [Coming Soon]
6. Strategic partnerships
Partnering with other organizations, businesses, or influencers can open new funding opportunities and expand your reach. Work together on events or joint projects to leverage each partner’s resources and networks.
Strategic partnerships help boost your nonprofit’s credibility, attract new donors, and provide extra resources to support your fundraising goals.
8 common challenges and how to overcome them
1. Navigating grant application rejections
Grant rejections are common, but they can be helpful. Review feedback to spot weak areas in your applications. Make your proposals stronger by aligning them with the funder’s priorities and showing clear results.
Apply to multiple grants to reduce reliance on one source and use past experiences to improve future applications.
Learn how to craft compelling grant proposals for your nonprofit [Coming Soon]
2. Building donor trust
Trust is key for keeping donors and attracting new ones. Be transparent by sharing clear financial reports and updates on how donations are used. Stay accountable by following ethical fundraising practices and managing funds responsibly.
Regularly update donors on the difference their support is making, which builds lasting relationships and encourages bigger contributions.
3. Maintaining consistent funding
Steady funding is crucial for long-term success. To avoid relying on just one source, seek diverse funding options like individual donations, grants, and events. Offer monthly giving programs to ensure a regular income.
Keep adjusting your fundraising strategies to meet changing donor behaviors and circumstances, providing a reliable cash flow.
4. Managing fundraising costs
Keeping fundraising costs low ensures more funds go toward your mission. Track your expenses and identify areas where you can cut costs. Focus on affordable methods like online campaigns or peer-to-peer fundraising.
Use volunteers and donations-in-kind to support your efforts without spending too much. Invest in tools that make your fundraising more efficient and cost-effective.
5. Competition for limited funds
With so many nonprofits competing for the same funds, standing out is essential. Focus on what makes your nonprofit unique and show measurable results.
Personalize your proposals to highlight your strengths, especially in specific areas where you excel. Build strong relationships with funders and showcase your impact to set yourself apart from the competition.
6. Limited capacity or resources
Many nonprofits struggle with limited staff and resources. Focus on the most important fundraising activities and use volunteers to fill in gaps.
Provide training to your team to improve their skills and use technology to streamline your efforts. Collaborating with other organizations can help you share resources and increase your fundraising potential without extra cost.
7. Adapting to donor trends and preferences
Donor behaviors are constantly evolving, so it’s crucial to stay on top of trends like the rise of digital giving and socially responsible investments.
Adjust your strategies to include online donation options and socially conscious campaigns. Regularly check in with donors to understand what they prefer, and tweak your approach to keep them engaged and supporting your cause.
8. Regulatory and compliance issues
Nonprofits must navigate many rules and regulations. Stay compliant by following the laws related to fundraising, financial reporting, and donor privacy. Keep up with any changes in the rules, and train your team to stay informed.
Consulting legal or financial experts can help prevent problems and ensure your fundraising is up to standard.
How to choose your nonprofit funding sources
1. Assess your mission and goals
Start by defining your nonprofit's mission and the funds you need to achieve them. This will help you find funding sources that match your mission.
2. Research funding options
Consider different ways to raise funds, such as individual donations, grant funding, corporate sponsorships, membership programs, and fundraising events. Each option has its perks, so take time to see what fits your needs.
Connect with local nonprofit organizations and read about global nonprofits to gain ideas and discover new funding streams.
3. Analyze your target audience
Think about who supports your nonprofit and what they care about. Do they like giving small donations, large gifts, or regular payments? Understanding their preferences will help you pick the right funding mix that aligns with their interests while also being convenient.
4. Evaluate your resources
Take a look at what your nonprofit organization already has. Do you have a strong group of volunteers? Are there board members who know potential donors? Use the skills and assets you have to boost your chosen funding sources.
5. Test different approaches
Try out different funding strategies to see what works best. For example, if you want to try crowdfunding, start with a small campaign to test interest before going bigger.
6. Monitor and adjust
Once you’ve picked your funding sources, monitor the progress and get feedback from supporters. If something isn’t working, be ready to change your approach or explore new options.
7. Stay informed on trends
Giving trends change constantly, so look for new opportunities. Attend workshops, webinars, and events to learn the latest tips and share ideas with others.
Final thoughts on how to get funding for a nonprofit
Building a sustainable nonprofit requires thoughtful planning and diverse revenue streams. The most resilient organizations combine traditional funding sources with innovative approaches to create stable financial foundations. Success comes from understanding your donors' preferences, staying current with fundraising trends, and consistently demonstrating impact.
As you implement these funding strategies, remember that every dollar saved on platform fees means more resources for your mission.
Modern fundraising tools should enhance your efforts, not drain your budget. Zeffy offers a 100% free fundraising platform that allows you to allocate more towards your cause.
